KUALA LUMPUR (June 21): Jade Marvel Group Bhd plans to raise up to RM80 million through the issuance of  redeemable convertible preference shares (RCPS) to fund its money lending business and working capital.  

The group said the exercise would involve the issuance of up to 80 million new RCPS, at the issue price of RM1 per share, to Sycamore Capital SPC, a company incorporated in the Cayman Islands and acting on behalf of Sycamore Equity Fund SP.

“The proposed RCPS issuance will enable the group to finance its money lending business without drawing upon its existing cash and bank balances, which is required for the group’s existing operations and funding needs,” Jade Marvel said in a bourse filing on Wednesday (June 21).

As at March 31, the group’s cash and bank balances amounted to RM3.7 million.

“The board is of the opinion that the group’s successful venture into the money lending business (on Jan 26, 2022) which has shown continued growth is expected to contribute positively to the financial performance and position of the group,” added Jade Marvel.

The group said the RCPS will be issued in 320 equal tranches at any time before the maturity date, which is 36 months from the issue date of its first tranche.

The RCPS are convertible into new ordinary shares in Jade Marvel, not exceeding 10% of the enlarged total number of issued shares following the conversion of the RCPS.

“The conversion price shall be at 80% of the average closing price on any three consecutive business days as selected by the RCPS holder during the 45 business days immediately preceding the relevant conversion date of the RCPS, subject to the minimum conversion price (at 12 sen),” Jade Marvel said.

On the maturity date, any remaining outstanding RCPS which are not converted into new ordinary shares will be redeemed by Jade Marvel.

The group said the RCPS does not carry any right to receive dividends.  

TA Securities Holdings Bhd has been appointed as the adviser for the exercise.

Jade Marvel’s shares closed one sen or 5.56% higher at 19 sen, bringing the group a market capitalisation of RM80.48 million. In the past one month, the counter has fallen 24%.